State of São Paulo and Republic of Panama v. The American Tobacco Company, et al.
State of São Paulo of the Federative Republic of Brazil, et al. v. The American Tobacco Company, et al., 919 A.2d 1116, Supreme Court of the State of Delaware (2007).
- United States
- Feb 23, 2007
- Supreme Court of the State of Delaware
Two foreign governments filed separate actions against several manufacturers and distributors of tobacco products seeking recovery of government medical expenditures incurred when treating their citizens from diseases caused by tobacco use after being misled regarding the health risks of smoking. The Supreme Court of the State of Delaware consolidated the two cases. Upon consideration of defendants' motion to dismiss, the Court held that foreign governments could not legally assert claims on behalf of their citizens, except in situations where the federal executive or federal legislature has granted such ability. Moreover, the Court held that the governments' claim was not cognizable. By alleging only derivative harms caused to the government and failing to allege primary harms caused to specific citizen subrogees, the government-health insurers failed to assert a legal duty owed by the tobacco companies.